* ECB's Draghi says will monitor impact of rising euro
* Euro drops sharply versus dollar, yen
* U.S. stocks slide after jobless claims, retail sales data
By Wanfeng Zhou
Feb 7 The euro fell broadly on Thursday after
the European Central Bank's chief said policymakers will monitor
the impact of a rising currency, while U.S. stocks slid after
jobless claims and mixed retail sales data.
The ECB left its main interest rate at 0.75 percent. In a
post-meeting press conference, ECB President Mario Draghi said
the exchange rate was not a policy target, but is important for
growth and price stability.
He also said risks to the economy were on the downside and
that economic weakness in the euro zone will likely prevail in
the coming months.
"Clearly he does not want to see the euro go much higher,"
said Boris Schlossberg, managing director at BK Asset Management
in New York. "There is massive pressure from the French. He is
signaling displeasure that it ran up so much."
The euro was last at $1.3421, down 0.7 percent on the day
, with the session low at $1.3419. Against the yen, the
euro was down 0.8 percent at 125.58 yen, with the
session low at 125.53 yen.
Before Thursday's declines the euro had risen more than 2
percent against the greenback so far this year and over 10
percent versus the yen.
U.S. stocks, after a flat start, fell, with shares of
retailers and home builders leading the decline. The Dow Jones
industrial average dropped 104.18 points, or 0.74
percent, at 13,882.34. The Standard & Poor's 500 Index
was down 10.25 points, or 0.68 percent, at 1,501.87. The Nasdaq
Composite Index was down 23.58 points, or 0.74 percent,
"With the S&P 500 Index approaching five-year highs, my
sense is that the next leg of any rally will have to come with
meaningful revenue growth from a broad swath of the component
companies," said Dan Nathan, co-founder of options analytics
firm RiskReversal.com in New York.
The benchmark 10-year U.S. Treasury note was up
6/32, the yield at 1.9407 percent.
Weekly initial jobless claims dipped by 5,000 to 366,000,
with the four-week moving average falling to its lowest level
since March 2008, signaling the economy continues to recover
Several U.S. retailers reported mixed January sales results,
as consumers faced a hit to their take-home pay from higher
The pan-European FTSEurofirst slipped 0.1 percent to
1,150.79, while MSCI's all-country world equity index
was down 0.6 percent at 353.24.
"The medium and long-term positive trend is still intact,
although on the short term, we're turning 'neutral'; indexes are
very close to key support levels," said Aurel BGC chartist
Brent crude rose 37 cents to $117.10 a barrel. U.S.
crude fell 40 cents to 96.22 a barrel.